Asked by mackenzie newland on May 01, 2024
Verified
A drawer whose bank paid checks over a stop-payment order may not be entitled to have his account recredited if he is unable to show he suffered any loss.
Stop-Payment Order
a request made to a bank by an account holder not to pay a check that has been issued but not yet cashed.
Loss
A decrease in value, resources, or money typically as a result of a business transaction, investment, or unforeseen events.
- Explain the consequences of a bank's negligence or failure to honor its duties, including financial compensations.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
The drawer-customer has the burden of establishing the fact and amount of the loss.To show a loss,the drawer must establish that the drawee bank paid a person against whom the drawer had a valid defense to payment.To the extent that the drawer has such a defense,he has suffered a loss due to the drawee's failure to honor the stop-payment order.
Learning Objectives
- Explain the consequences of a bank's negligence or failure to honor its duties, including financial compensations.
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